New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-04-30
PRESIDENT ADAMS's VIEWS.
VALUE OF UNION PACIFIC BRANCHES.
RELATIONS OF THE COMPANY WITH THE GOVERN
MrST-A PERSONAL STATEMENT.

Adams, OF the Union facinc, yes'ofuay' JUG 49,
RAILROAD Commissioners allowed him to make per
.oual statement Some of the newspapers, be SAID
cr,ticised him. because no had not displayed more
tnovedge In regard to tho books ana accounts Oh Ms
comn.ny To this he wished to say that he was MT
hooEkeensr. and even IL he were 1t would be simply
:.o.;hle Tor him to know all about the details o!
.ueb vast concern He had to take the word OF those
nnder him for many things. as any one else IN sucn
position would be compelled to 90.
Then continuing the line OF testimony begun Oh
Thursday IL regard to the various prancn roaos he
.noLs At considerable length on the Oregon Short
line which runs from Granger on the Unior RACINE
$50 miles east OF Ogden and connects with the oregon
Navis alton Company's road at Huntington on the
northern border of Oregon 1t s 6lo miles IN iehgln
and A valuable feeder to the Union racine Ii war
ircorp,rated in 1881 and finished the following year.
when Il was started, he said, one supposed that
the Northern Pacific would be completed for many
vears But Mr. Willard appeared on the scene and
the Northern Pacific finished FIRST. Ii cost De-
tween 500, 900 and $4,000 mile July equipped
but oould be built much cheaper now. In tact, Mr.:
Ids. aid all roads in the West could be constructed
for NJ least 80 per cent less now than i've or SIX years
aao This line was bonded at the rate OF $2o,OOO
mile The stockholders of the Unoh Paciho TOOK all
the bonds and halt the stock The other Bali Is IN the
Union Psci6cs vaults Idaho, tnrougn "hicn Tue iV"u
masses. the witness thought was the most promisDs
Te,ritorv in the country. The road runs along the
allev nj the Bear River through grazing and farm
inc though mountainous country, then through iaVa
bcds and mninA section, and then into the aErcul-
tural region about Boise City only sage oiusn groms
90 ,ha lava beds. Lut although there is agriculture
there IL might easily be produced as sage brush inu
estes fertile soil needing only irrigation.
TIE oregon Railroad and Navigation lines had
rec.n,v been leased to the Oregon Short Line, the
latter guaranteeing the Navigation company oonas
ond ner cent dividend on the stock VI course the
Him Pacific stood behind the Short Line and would
have IN assume the burden If the leased lines did not
prove profitable r.,
road VAS set down as SZo,oooUoo IN the balance
sheets of the company when 1t really only cost about
Gil OOO 600 acc ording TO Mr.. Adams's statements
The latter explained that bonus OF $500 worth of
stoek went with each $1,000 worth of bonds sub
scribed Tor. The Union Pacific had guaranteed the
payment of the Short Lines bonds by the advice of its
coansel. Messrs. Dillon and Bartlett. HIS attention
was called to the act OF 1873, which forbids the
issuance of stock the placing of mortgages by the
eompany without the of Congress lie replied
that he attempted TO revise the opinions of his
counsel In defence OF the branch roads, he said that
il had not been for them the income of the Govern.
ment from the Union Pacific would have been less
than halt of what it had been.
The Salina and Southwestern branch taken up.
This is line that runs through Champ ion County,
Kansas, OF the best wheat growing regions of that
State and had proven TO be an excellent investment
Mr.. Adams said that he would think OF
losing finger entertain the idea of abandoning
this line. Mr.. Adams did not know much about the
Salt Lake and Western, but referred the Commission
about il.
Brigham Young, be said, was the promoter of the
Utah Northern Branch, which runs from Salt Lake
and Ogden north thI0ug Idaho connecting with the
Northern Pacific at Silver Bow and Garrisons 1t was
built by private enterprise: The Union Pacific ac-
quired possession OF 1t in 1870 1t Paid well at first,
but when the Northern Pacific built it cut in
two and has yielded small returns ever since. Ihs
year he thought it would at least pay expenset. This
line it seems, was built on religious principles The
Mormous kept it out OF the valleys almost entirely,
and ran it along the hsides to the great deriment OF
the line The business of the road is taken down the
Oregon Short Line and reaches the Union Pacific at
Granger.
Then Mr.. Adams took up the question of construc-
tive mileage, system as he explained common TO all
parts of the country, whereby branch lines are
Above greater mileage their business than they
really had in order to compensate them Tor the bust
ness which they gave the mau line. Thus the parent
road may carry the eight 100 miles and the trbu-
tary road only fifty, yet the branch may be allowed
constructive mileage OF two miles Tor every nile
OF actual carriage and thereby receive as much OF the
freie hit charges the main road The system he said,
worked geously in the OF the Union Pacific
and he thought we'll OF it, He believed tina it also
worked advantageuusly tor the Government, refer
ring TO the tact that it had been Endorsed by the
United States Commission OF which George G.. Haven
was the head which had fully examined its workings
MI Andersonsve there been complaints to Of dis
osnerl Avery lew Hill Colorado large seiler who
So@petitOrs could get their mines cheaper
me- y HEa Bd on ali these details Then it otter happens that one
Jealous OF another TIE rule d down by me has
possible but OF have been Obliged to depend Oh my
To another question Mr.. Adams replied that he
never heard ans discussion OF the proposition to give
the Union Pacific up to the Government outside OF The
newspapers.
On the subject of pools Mr. Adams said that in the
old transcontinental pool the Pacific Mail Steamship
Company received from the pool 1000 a month to
keen up its rates. TraDscOntinental business, how
ever was steadily declining Still he considered that
the Transcoutneutal Pool and the payment OF the
subsidy to the Pacific Mail decided advantage both
~. a.. o,.1 fha ton
the pool went TO pieces the Union Pacific carried
80 per cent freight bnt got 70 per cent less Tor
carrying it, The average rate tor freight during the
existence OF the pool l.22 cents per mile after
The pool broke it was oAly 40 OF cent mile.
The afternoon ion vas briet the commissioners,
having decided during the recess that the further
examination of Mr.. Adams might better be deferred
until he returns froin tho West, when they would
be better acquainted with the affairs OF the company
Before adjournment however. Chairman Pattison
asked the witness a few more general questions in
regard to the roads relations with the Government.
Dir. Adams said that the roads revenue was derived
from two sVurces-its earnings and general income
fom lands, rentals and other properties. The
amount paid by it TO the Government was reckOned
OIL its net earnings and that alone. The Government
had nothing whatever 10 do with its general income
This matter he said had been settled by decisions OF
the courts at least he had been informed by the
counsel OF the company EX-Judge Dillon explained
to him that the Governments lien did not extend to
the comp any's land: therefore in making up lis
reports the receipts from the land sales did not figure
in the net earnings which payment had to be made
10 the Government. lie went on to say that the
decision OF the Supreme Cour; in the Net Earning
ease fully covered this point but Mr.. Anderson did
not seem TO agree With him.
"All those things are matters for the counsel to talk
about I only know what they tell me on then"
remarked the witness.
The policy OF the road he said was to pay its junior
bonds not subsequent TO those OF the Government.
The principle il worked was that the best invest
ment man could make is his NOTE The COM
pany took up 100000 worth OF land bonds this
month and expected TO take up the rest that it had
within year.
r., 10 tba nent Mr
Adams said that the company had nothing 10 90 ex-
cept to pay them. They computed and
presented and had to be paid whether the conn any
thought them just uDust The Government, he
thought had treated the road harshly and unfairly
through ignorance and prejudice and through
general Misunderstanding on this point, which was
fully set forth 10y the law the subject. He added
that the company unfairly treated In other re.
epects since the Government. rule decided all